Memphis Tennessee Bankruptcy Blog

When your bankruptcy is done, you are eager to move on. Many people never want to even look at their old bankruptcy paperwork. Even so, you should still preserve your bankruptcy documents and keep them in a safe location. There may be some occasions when you need to access your old bankruptcy paperwork. In fact, your documents may even help you with your financial future in Tennessee.

As US News and World Report explains, at some point following your bankruptcy, you may want to approach a lender for a mortgage on a home or a loan to finance a new business. However, the subject of your bankruptcy is bound to come up, at which time your lender may ask to see any number of your bankruptcy documents. These can include your bankruptcy petition or the court documents of your bankruptcy filing.

In the wake of a Tennessee bankruptcy filing, chances are, you are working hard to get your finances straightened out so that you can get the fresh start you desire. While filing for bankruptcy is often the first step in the process of rebuilding your financial situation, there are also steps you will need to take after your bankruptcy filing if you wish to get your affairs back in order. At McElroy & Associates, we recognize the critical nature of rebuilding your credit after bankruptcy, and we have helped many clients facing similar circumstances accomplish this and related objectives after a bankruptcy filing.

According to Nerdwallet, the bad news about filing for bankruptcy is that doing so may have a negative impact on your credit score. Your credit score may have already been suffering, however, if you were struggling to keep up with your bills, and there is some good news – you can start rebuilding your credit pretty quickly following a bankruptcy filing.

Many aspiring or current entrepreneurs in Tennessee worry about the effects that bankruptcy may have on their ability to secure financing for their projects. However, there is more myth than fact to many of the ideas surrounding the relationship between debt restructuring and business loans.

Chapters 7 and 13 of the bankruptcy code are personal types of bankruptcy. They may not affect certain business matters at all. Other repercussions, while they often exist, may not be as extreme as most people imagine. 

As a Tennessee resident who is grappling with increasingly overwhelming medical, credit card or other debt, you may be weighing your options and trying to determine whether filing for bankruptcy could potentially give you the fresh start you desire. You may, too, recognize the terms “Chapter 7” and “Chapter 13,” but you may not fully understand the distinctions between the two main types of consumer bankruptcies or know which type may be more appropriate for your circumstances.

According to the American Bar Association, the primary difference between Chapter 7 and Chapter 13 bankruptcies is that Chapter 7 bankruptcies are essentially straight-up liquidations, while Chapter 13 bankruptcies involve establishing some type of payback plan. More specifically, Chapter 7 bankruptcies are for lower-income earners who do not have enough money at their disposal to pay back any of their debts, while Chapter 13 bankruptcies are for those with higher income levels who can typically pay back at least part of what they owe creditors.